Third-Quarter Financials Released for Essex Rental Corp. Subsidiaries

November 4, 2015 - Essex Rental Corp. announced its consolidated results for the third quarter of 2015. Essex Crane equipment rentals segment revenues were $9.5 million for the three-month period ended September 30, 2015 versus $11.4 million for the same period last year. Coast Crane equipment rentals segment revenues were $9.6 million versus $10.3 million for the three-month period in 2014.

 

Revenues include equipment rentals, transportation, and used rental equipment sales revenue generated from both subsidiaries. The $1.9 million decrease recorded by Essex Crane was primarily driven by a $1.3 million decrease in used rental equipment sales and a $400,000 decrease in transportation revenue. Despite the decrease in revenue, gross profit from the equipment rentals segment remained flat, driven by improved margins from the used rental equipment sales and transportation.

 

The $700,000 decrease logged by Coast Crane was driven by a $1.4 million decrease in used rental equipment sales, partially offset by a $600,000 increase in equipment rental revenue and a $100,000 increase in transportation revenue. Despite the decrease in revenue, gross profit increased by $600,000 or 15.0% due primarily to stronger margins from equipment rentals and transportation.

 

“Despite a challenging equipment sales market, the company generated its highest adjusted EBITDA excluding non-cash compensation and non-recurring costs since the acquisition of Coast Crane in late 2010,” said Nick Matthews, president and CEO of Essex.

 

“The strategic initiatives put in place last year continue to benefit the company and it is encouraging to see the early results of the cost-savings initiatives that were implemented during the third quarter of 2015. We anticipate the full impact of these initiatives will become more apparent as we move forward,” he added.